John
and Mary Richards, two married taxpayers, have TAXABLE INCOME of
$130,000. Richards' income falls between:

Between

But
Not Over

Base
Tax

+
Rate

Of
the Amount Over

$117,250

$178,650

$22,787.50

28%

$117,250

John
& Mary Richards' Estimated Taxes

=
Base Tax + (Rate x Amount Over)

=
$22,787.50 + [.28 x ($130,000 - $117,250)]

=
$22,787.50 + (.28 x $12,750)

=
$22,787.50 + $3,570.00

=
$26,357.50

Example
#2

Larry
and Linda Edwards, two married taxpayers filing a joint return,
have combined TAXABLE INCOME of $185,000. The Edwards' income falls
between:

Between

But
Not Over

Base
Tax

+
Rate

Of
the Amount Over

$178,650

$319,100

$39,979.50

33%

$178,650

Larry
& Linda Edwards' Estimated Taxes

=
Base Tax + (Rate x Amount Over)

=
$39,979.50 + [.33 x ($185,000 - $178,650)]

=
$39,979.50 + (.33 x $6,350)

=
$39,979.50 + $2,095.50

=
$42,075.00

This equation
does not reflect standard deductions, mortgage deductions, or any other
credits that may decrease your estimated taxable income. Use only for
2004 income taxes. The names mentioned in these samples are fictitious
and not based on any individual. Actual tax tables may apply if your income
is less than $100,000. For illustrative and planning purposes only.